When you fail to meet your tax obligations for a long time, the amount of debt you gather, can become overwhelming. Failing to file taxes for years may create bigger tax problems that may be difficult to resolve. Since the federal tax law is so complex, it could be particularly hard for the common folk to understand it and even a small mistake can have serious consequences. You or your business may face charges that may have occurred due to a simple clerical error or misunderstanding. If you are being accused of tax evasion, you will need to take care of all your financial records and prepare a strong case for defending yourself against the tax evasion charges. Hiring an attorney will prove extremely beneficial in such a situation. Here are some of the common defenses that you may use:
- It would be wise for you catalog all the receipts and documents that demonstrate your payments of the yearly taxes in question. You must maintain a chronological file of federal and state revenue forms that would clearly indicate that your tax record is clean.
- You must provide your attorney with the state and IRS tax forms so that he/she gets a picture of your current tax status. You will need to provide documents starting from the present time and they should date back to the year before the time in question. You would have to create a paper trail of letters, tax returns and all the other documents.
- it is always wise to find a lawyer who has expertise and years of experience in defending tax crimes and particularly tax evasion charges. Your attorney with efficiency and experience in various tax related matters will be able to offer you the right guidance and can help you find loopholes in the state law.
- You may mention that there has been some sort of a miscommunication between you and the state revenue service or the IRS and use it as a defense. If you can come up with sufficient proof to show that clerical errors have taken place in the IRS documents, it may be the best defense against the charges you are facing.
- You can also try and clear up your tax problem by providing all the documents related to corporate shares, profits and inventory reports to the court. Defending against tax evasion charges will become easier if you can show that your business and personal accounting are well taken care of.
Those were some of the common defenses against tax evasion charges that attorneys use. Your case may be different and the usual defenses may not work. So you must discuss your case with your attorney to come up with the best defense.